The European Union has agreed to resume talks with Russia intended to reach a 'partnership pact' that covers political, economic and trade ties.

Talks were suspended in September, following an outbreak of hostilities between Russia and Georgia over the breakaway region of South Ossetia.

French President Nicolas Sarkozy, who also currently holds the EU rotating presidency, negotiated the accord that ended fighting.

Mikhail Saakashvili, the Georgian president, is said to be intending to raise concerns about Russia's non-compliance with commitments to withdraw troops. While it has withdrawn troops from out of the heart of Georgia, Russia still has several thousand massed in South Ossetia, which Moscow has recognised as an independent state.

A summit is scheduled to take place in Nice, France, on Friday, November 14, and Inside Story discusses the impact of the short-lived conflict on Russia's relations with the EU, and also why Russia is important to Europe in the long-term.